First Minister welcomes extension of furlough scheme to end of March

The First Minister has welcomed the announcement from the Chancellor of the Exchequer Rishi Sunak that the furlough scheme will be extended until the end of March.

It will allow Welsh businesses to continue accessing the scheme if they are forced to close due to the pandemic over the coming weeks and months.

Mr Sunak revealed the Welsh Government would also receive an extra £600m to help deal with the Covid outbreak.

Around 68,000 jobs in Wales are currently being supported through the furlough scheme, down from a peak of 378,400 in June 2020.

Under the scheme, which pays up to £2,500 of wages, employers will only have to cover National Insurance and pension contributions.

And the next self-employed income support grant - which covers November to January - will also increase from 55% to 80% of average profits, capped at £7,500.

Mr Sunak said in the Commons: "I also want to reassure the people of Scotland, Wales and Northern Ireland. The furlough scheme was designed and delivered by the Government of the United Kingdom on behalf of all the people of the United Kingdom, wherever they live.

"That has been the case since March, it is the case now and will remain the case until next March.

"It is a demonstration of the strength of the Union and an undeniable truth of this crisis we have only been able to provide this level of economic support because we are a United Kingdom.

"And I can announce today that the upfront guaranteed funding for devolved administrations is increasing from £14 billion to £16 billion.

"This Treasury is, has been and will always be the Treasury for the whole of the United Kingdom."

It comes after the First Minister criticised the UK government's decision to extend the furlough scheme for the duration of the English lockdown, but did not do so for the Welsh firebreak.

First Minister Mark Drakeford welcomed today's announcement from Mr Sunak, but said he had been calling for it "for some time."

Speaking in the Welsh Government's coronavirus briefing, Economy Minister Ken Skates also welcomed the announcement but admitted he had not been briefed on it before the media.

He said: "I do welcome what appears to be an announcement that meets what the Welsh Government has been calling for for some time.

"There is a necessity to support people for however long it takes to get through the pandemic."

Plaid Cymru’s Treasury spokesperson, Ben Lake MP, said the announcement should have come with an apology.

Mr Lake said: “The Chancellor previously dismissed calls to extend furlough in this way, and so the boastful rhetoric that accompanied today's announcement was in poor taste. An acknowledgement of the uncertainty that his initial refusal, and subsequent U-turn, had caused households and businesses would have been more appropriate."

Watch Wednesday's Welsh Government coronavirus press briefing in full here:

Ben Francis, FSB Wales Policy Chair, welcomed the move, calling it "bold and much-needed".

He said: "The ability to furlough staff on these terms until March will give employers an acutely-needed injection of confidence as they head into the festive period beset by disruption.

"Enabling firms in any location to furlough staff is a very welcome move."